SRI - Singapore Realtors Inc.

28 Aug 2025

Singapore Office Market Review 1H2025: Prices, Rentals and Outlook

The strata office market displayed encouraging growth in the first half of 2025. Transaction volume rose from 160 deals in 1H2024 to 189 deals in 1H2025, reflecting an 18.1% year-on-year increase. This upward trend shows firm investor confidence in strata-titled spaces, with buyers continuing to seek bite-sized investments in city-fringe and decentralised areas. Limited new strata supply and long-term capital preservation strategies also played a part in strengthening commitment from investors.

The outlook suggests the office market is shifting towards a more balanced state. The island-wide vacancy rate declined to 11.4% in 2Q2025, down from 11.7% in the previous quarter, pointing to healthier demand dynamics. Tenants continue to right-size, consolidate, or upgrade into better-quality spaces, particularly newer Grade A developments. The narrowing vacancy rate is a positive sign for landlords managing high-specification assets, as rental stability could be sustained.

Sentiment is cautiously optimistic. The Department of Statistics’ Business Expectations Survey indicates firms in the services sector expect conditions to improve from July to December 2025. This aligns with Singapore’s economy, which expanded by 4.4% year-on-year in 2Q2025, up from 4.1% in the first quarter. Growth was broad-based, with manufacturing, construction, wholesale and retail trade, finance, transport, and storage contributing.

Occupiers remain focused on efficiency, sustainability, and talent attraction. Combined with Singapore’s political stability, pro-business environment, and infrastructure, these factors strengthen its role as a regional hub. In summary, stable macroeconomic fundamentals, improving sentiment, and tightening supply support a steady leasing environment. The office market is expected to remain resilient, especially in the Core CBD and decentralised nodes, where long-term structural trends continue to drive demand.

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Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: research@sri.com.sg

22 Aug 2025

Freehold Shophouses Remain Top Pick in 1H2025 Market

A total of 38 caveated shophouse transactions were recorded in 1H2025, moderating slightly from 44 in the same period last year. Freehold shophouses continued to dominate investor preference, making up 76.3% of transactions

District 8 emerged as the most active, clocking 12 transactions, underpinned by its central location, cultural vibrancy, and high footfall from locals and tourists.

Looking ahead, demand for conservation shophouses is expected to stay resilient despite ongoing global trade uncertainties. Their limited supply, heritage charm, and strategic locations continue to support their long-term investment value. Shophouses offer flexibility of use, from lifestyle retail and boutique offices to F&B concepts—making them attractive legacy assets.

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for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

research@sri.com.sg

15 Aug 2025

July 2025 Developer Sales Rebound on Strong New Launch Activity

July 2025 marked a strong rebound in Singapore’s new private home sales, with developers selling 940 units excluding Executive Condominiums (ECs), up sharply from 272 units in June. Including ECs, total sales reached 1,311 units, compared to 305 in the previous month. This recovery followed two quieter months and reflected renewed momentum in the primary market as multiple high-profile launches attracted strong buyer interest.

The surge was driven by a wave of new projects, including The Robertson Opus, UpperHouse at Orchard Boulevard, LyndenWoods, and EC development Otto Place. These launches provided buyers with diverse options across regions and price points, revitalising market sentiment.

Top-selling projects in July highlight strong performances in both EC and private segments. Otto Place led with 358 units sold at a median price of $1,746 psf, reinforcing robust demand for ECs, particularly in areas with recent successful projects like Novo Place. In the non-EC category, LyndenWoods topped sales with 331 units at $2,463 psf, achieving over 94% take-up in its launch weekend. Its location in the Rest of Central Region (RCR) within Singapore Science Park offered a unique proposition, appealing to professionals in tech, biomedical, and R&D sectors. This aligns with the URA Draft Master Plan 2025’s vision for Greater One-North as an innovation district integrating housing, research, and business infrastructure.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: research@sri.com.sg